Mexico and Panama signed a free trade agreement (FTA) on April 3 2014. The conclusion of this agreement is an important step for Panama on the way to becoming a full member of the Pacific Alliance (PA) regional trade bloc. The FTA is also likely to result in more trade in goods and services between the two countries and promote investment between them.
Full membership of the PA would first require the signature of FTAs with all the members of that organization, these being Chile, Peru, Colombia and Mexico. This FTA with Mexico is the last such agreement that Panama needed to sign to complete the required set of FTAs and this therefore represents an important milestone on the path to full PA membership.
